All commercial premises are attributed a rateable value by the Valuation Office who is part of HMRC. Currently, under the 2010 Rating List, all rateable values reflect what your premises might have let for, had they existed in their current condition, on 1 April 2008.
The rateable values are passed to the relevant Local Authority, who apply them to the Uniform Business Rate (UBR) which is currently 49.3 pence in the pound. The Council send out annual rate demands and collect the liabilities over 10 or 12 instalments.
Appeals can be submitted against the rateable value by the ratepayer or his agent, either because the assessment is considered excessive or because of a material change of circumstances, such as adjoining building operations.
All rateable values are due to be revised from 1 April 2017, at which time they will alter to reflect rental values as at 1 April 2015.
It is anticipated in Central London that there will be substantial increases in both rateable values and liabilities. The new assessments are to be released in draft form in October 2016.
It is proposed that a new appeals procedure will be introduced with effect from 1 April 2017, known as 'Check, Challenge, Appeal'. This may delay the appeal process significantly and will require primary legislation to be enacted.
Previously when Rating Revaluations have taken place, the Government have provided Transitional Allowances on rate liabilities, limiting the maximum increases in annual payment to no more than 12.5% plus inflation in the first year, 17.5 % in the second year, 20% in the third year and 25% in the fourth year.
The allowances continue until the simple arithmetic of the new rateable values, applied by the UBR, is reached.
In addition to the business rate charges, rateable values in London that are in excess of £50,000 attract the Crossrail Surcharge of 2 pence in the pound and individual Local Authorities may also charge supplements relating to Business Improvement Districts (BIDS).
DeVono Cresa can support you with advice on business rates including the merits of appeals.
For further information, or to receive a copy of our London Business Rates Guide 2016, simply fill in this form and a member of the team will contact you or call us on 0207 096 9911 or email email@example.com